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Romania to be marginally affected by credit crisis but economic perspectives are positive

de A.C.
Marţi, 22 aprilie 2008, 13:26 English | Business

Romania's economic growth will amount to 6.6% in 2008 and will remain above 6% in the following couple of years because of the service and constructions sectors, Romanian Bank for Development (BRD) chief economist Florian Libocor has said. On the other hand, the annual inflation might amount to 9% by July 2008 but it will cool down in the second part of year. Romania's National Bank could decide in such a context to increase the key interest rate up to 10%.

He added that Romania's economy will be marginally affected by the subprime crisis arguing that the banking system is solid enough despite any vulnerabilities created by the current account deficit.

Moreover, the exchange rate may go down to 3.4 Romanian Ron for 1 euro in 2008 and is estimated to reach 3.35 Romanian Ron for 1 euro. Plus, the budgetary deficit will maintain itself within the limits of the Maastricht criteria.

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